Budget 2023-24 Expectation: What FMCG sector wishes from Nirmala Sitharaman

The whole country is eagerly waiting for the presentation of the Union Budget 2023 on 1 February by Finance Minister Nirmala Sitharaman. With just a few days left for the announcement, the fast-moving consumer goods (FMCG) sector of India has several expectations from the Budget. The FMCG market of India was valued at $110 billion in 2020, making it the fourth-largest sector in the Indian economy, according to Statista. The market size of the sector has tripled in comparison to 2012. The market is expected to grow to $220 billion by 2025. Naturally, the sector is hoping for more allocation and tax benefits. Here are some of the expectations of FMCG industry from the Union Budget 2023-24: Growth of market for millet-based products Shauravi Malik and Meghana Narayan, Co-Founders, Wholsum Foods told Mint, “As consumers become increasingly health-conscious and the government continues to put the spotlight on the grain, we are confident that the market for millet-based products will only grow exponentially.” They added that the government’s recent action plan for improving the export of millets and value-added products having the grain is a welcome move in the direction. Enhancing disposable income in the hands of consumers Saugata Gupta, Managing Director (MD) and Chief Executive Officer (CEO) of Marico, told Financial Express that the upcoming Union Budget should focus on boosting disposable income in the hands of middle-class consumers. This can be done via favourable fiscal policies and beneficial tax regimes. The moves, if implemented, should eventually cause demand generation and boost consumption levels. Higher allocation for rural development Vincent K A, research analyst at Geojit Financial Services told Mint that there is a need to support farmers because of the high inflation levels. He added that many people expect a higher allocation for rural development in this budget. The allocation for FY23 stood at Rs 1.35 trillion. According to Vincent, rural demand is crucial for overall growth, as rural India makes up 65 percent of the population. He said that a boost to measures such as Minimum Support Prices (MSP), micro irrigation and expansion of warehousing can be expected in this year’s Budget. Boosting GDP growth Nadir Godrej, Chairman and Managing Director of Godrej Industries told Business Today that the upcoming budget’s focus should be on increasing the country’s Gross Domestic Product (GDP) growth. He counted global inflation, aftereffects of the coronavirus pandemic, China’s economic slowdown, and the Russia-Ukraine conflict among the big challenges facing the Indian economy. Godrej added that since commodities account for most of the country’s inflation basket, and their prices are decreasing globally, headline inflation is likely to be around 5 percent. The global slump could pose a threat to the economy and hence the industrialist believes growth should be prioritised. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.